Pakistan LPG prices hit Rs600 per kg as market gap widens

Liquefied petroleum gas prices have reportedly climbed to Rs600 per kilogram in Pakistan’s mountainous regions, intensifying pressure on households and businesses that depend on cylinders for cooking and heating. LPG Distributors Association Chairman Irfan Khokhar said consumers in Punjab and Khyber Pakhtunkhwa were paying around Rs500 per kilogram.

The reported market rates are substantially above the official maximum consumer price for October. The regulator notified LPG at Rs279.34 per kilogram and set the price of a standard 11.8-kilogram domestic cylinder at Rs3,296.23, meaning the reported retail rate is approximately 79% higher in Punjab and Khyber Pakhtunkhwa and about 115% higher in mountainous areas.

Khokhar said domestic cylinders were being sold for approximately Rs6,000 in Punjab and Khyber Pakhtunkhwa and as much as Rs7,200 in hilly regions. These figures represent a sharp increase over the regulated ceiling and could have the greatest impact on families living in areas where piped natural gas is unavailable or unreliable.

The distributors’ representative called for immediate government intervention to stabilise supplies and restrain retail prices. He proposed using the Sui Southern Gas Company terminal to support the market and urged authorities to arrange additional LPG imports so that availability could improve and prices could ease.

The widening difference between notified and reported market rates raises questions about supply conditions, distribution margins and enforcement across the LPG chain. However, the report did not include an independently audited nationwide retail survey or a government response explaining why consumers in several regions were allegedly paying far above the official ceiling.

The regulator had already increased the October LPG price by Rs20.69 per kilogram, or about 8%, from September’s Rs258.65 rate. That revision added Rs244.14 to the price of an 11.8-kilogram domestic cylinder, lifting it from Rs3,052.09 to Rs3,296.23 after an increase in the international benchmark used for local pricing.

Even after that official increase, the prices reported by distributors are dramatically higher. At Rs500 per kilogram, a household buying 11.8 kilograms would pay around Rs5,900, while a Rs600 rate would place the equivalent quantity near Rs7,080 before any additional delivery or cylinder-related charges.

Elevated LPG prices can affect more than household cooking expenses. Restaurants, roadside food businesses, small workshops and commercial users may face higher operating costs, while consumers in colder and remote districts could encounter additional financial strain as seasonal fuel demand increases.

The immediate outlook will depend on whether authorities verify the reported overcharging, improve supply and act against violations of the notified price. Any import decision or use of additional terminal capacity would also require a formal government announcement, while continued monitoring will be necessary to determine whether retail prices begin moving closer to the regulated level.